Gold and silver prices continued their downward trajectory on July 24, 2026, as Brent crude oil futures climbed above the $100 per barrel mark for the first time in weeks, driven by escalating geopolitical tensions in the Middle East. Market participants turned cautious, leading to a shift in investment flows away from precious metals.
Gold and Silver Decline
On the Multi Commodity Exchange (MCX), gold futures (August expiry) fell by 0.5% to ₹54,950 per 10 grams, while silver futures (September expiry) dropped 1.2% to ₹71,200 per kilogram. The decline was in line with international spot markets, where gold slipped to $1,975 per ounce and silver to $24.80 per ounce. Analysts attributed the fall to a strong US dollar and rising bond yields, which typically weigh on non-yielding assets like gold.
Brent Crude Surges Above $100
Brent crude oil for September delivery rose 2.3% to $102.5 per barrel, marking its highest level since early July. The surge was triggered by reports of increased military activity in the Middle East, including drone strikes on key oil infrastructure in the region. According to market experts, the risk premium on oil has expanded sharply, threatening global inflationary pressures and complicating central bank policy decisions.
Impact of Middle East Tensions
The escalation in the Middle East has rattled global markets, with investors fleeing to safe havens like the US dollar and US Treasuries. However, gold has not benefited as a traditional safe haven, as the dollar’s strength and rising interest rate expectations have capped upside. "The geopolitical risk is high, but gold is facing headwinds from a stronger dollar and higher yields," said a senior commodity analyst at a leading brokerage. "Silver is more volatile and is being hit by industrial demand concerns."
City-Wise Gold Rates (22 Carat)
The following are the retail prices for 22-carat gold per 10 grams in major Indian cities as of July 24, 2026:
- Mumbai: ₹55,000
- Delhi: ₹55,200
- Chennai: ₹55,100
- Kolkata: ₹55,050
- Bengaluru: ₹55,150
- Hyderabad: ₹55,080
Silver prices in these cities ranged from ₹71,000 to ₹71,500 per kilogram. Dealers noted that demand remained subdued as consumers awaited a further correction. Jewelers reported lower footfall amid the prevailing uncertainty.
Outlook
Looking ahead, gold prices are likely to remain under pressure if the US dollar continues to strengthen and the Federal Reserve maintains a hawkish stance. However, any escalation in the Middle East could trigger fresh safe-haven buying, potentially reversing losses. Silver, with its dual role as a precious and industrial metal, may experience heightened volatility. Investors are advised to monitor geopolitical developments closely and consider diversifying their portfolios.
Industry experts suggest that the current correction offers an entry point for long-term investors. "Gold remains a hedge against geopolitical risks and inflation, and the recent dip is temporary," said a bullion trader in Mumbai. "We advise buying on dips for a horizon of 6-12 months."
